Greetings from Sanjay Sharma, the new President of the Global Sourcing Council

SourceURL:file://localhost/Users/apple/Desktop/march_newsletter2012%20UpdR.doc

As incoming President of Global Sourcing Council (GSC), I have many reasons to be excited by our growth and prospects:   our community and readership is growing rapidly now reaching 1,175 major cities in 100 countries, people are acknowledging the role of GSC in providing leadership and direction for future of sustainable practices to bring economic, social and environmental sustainability, and our 3S Awards (3SA) are being widely accepted by as preeminent in its field.  The GSC is committed towards sustainable global community, which stands for respect for global business rights, economic justice and respect for environment.

While many organizations focus primarily, or even solely, on global sourcing to reduce their cost and increase their profitability, they often don’t even have a long term strategy to fulfil their business goals. Businesses are the back bone of any socioeconomic development; emerging economies are thriving with opening of these global markets; the virtualization and cloud based computing are helping organizations.

Just focusing on cloud based computing, we can see the interplay of these concerns play out.  As we see increasing cloud based outsourcing, the organizations are not very happy and satisfied, as per the survey of a UK based company.  More than 60% management professionals who adopted or going to adopt cloud computing as an outsourced service from a global supplier are worried about the security of their data/information.  Yet, at the same time in another study done by tech consulting firm CSC, found that more than 90% of 3500+ IT decision makers surveyed reported “better performance in at least in one of their IT department since adopting cloud computing”.

Against this background, let’s analyze where does cloud computing – Global Sourcing of Services in this case – lead to?

In case of cloud based services sourced globally, open to on-shore, near-shore and off-shore, there will be:

  • Increased data center use and efficiencies
  • Lower operating costs
  • Reduced waste and lower energy consumptions (reduced carbon foot print and greenhouse gas emission)
  • Prepares and improves Global economy e.g. more production and consumption of goods and services, overall improving Global Economic health
  • SourceURL:file://localhost/Users/apple/Desktop/march_newsletter2012%20UpdR.docOn the other end there are concerns:
    • Who will be responsible for increased needs of training and development?
    • What if there are Data breaches, which party is responsible, vendor or buyer?
    • Responsibilities in case of Loss and/or Corruption of Data
    • Responsibility for cost of disaster recovery in case of data breach/ loss/ corruption
    • Overall cost of change management

    So, there are pro’s and con’s.  But where do executives and managers find best practices and answers before they commit their resources and put the reputation of their organization at stake to adopt cloud based computing?   I am sure you all must be thinking about whether we should adopt cloud based services and what factors you should consider.  In the big picture of the Global economy, cloud based computing is very new and a small piece of the pie, at least now.  There are so many other issues and concerns which I could not list here, however at GSC we try to find answers to most of the issues your organization can come across in order to be successful.

    I look forward to engage more and more of our stakeholders in participation to make Global economy more robust and healthy for all there to benefit from it.

     Sanjay Sharma has over twenty years of Global experience in Information Technology, Supply Chain and Project Management. Sanjay has managed backend Sourcing and Procurement operations for large organizations in Europe, Far East & Australia. He led procurement operations for a large industrial goods manufacturing organization. Sanjay has articles published in business magazines and publications on the subjects of procurement, supply chain and project management. Sanjay speaks at Conferences, Seminars and Symposiums. He works as consultant for Project Management and Global Sourcing. In addition he teaches Project Management subjects. His email contact is sanjaysrr@gmail.com.